Rubio Warns Europe & Warner Bros. Mulls New Paramount Talks | Daybreak Europe 02/16/2026
Watch on YouTube ↗  |  February 16, 2026 at 07:56 UTC  |  46:05  |  Bloomberg Markets
Speakers
Joumanna Bercetche — Anchor, Bloomberg TV
Mark Cranfield — Deputy Managing Editor, Bloomberg Markets Live
Oliver Crook — Chief Correspondent, Bloomberg
Tony Halpin — Russian Economy and Government Team Leader
Charlie Duxbury — Reporter, Bloomberg
Emmanuel McGrory — Deals Editor, Bloomberg

Summary

  • Macro Context (2026): The date is February 16, 2026. US inflation is benign (CPI trending to 2.6%), reinforcing bets on three Fed rate cuts this year. Gold is trading around $5,000/oz but seeing profit-taking.
  • Japan's "Takaichi Trade": Japan's GDP barely grew, reinforcing expectations that PM Takaichi will launch fiscal expansion. This is driving a divergence: bullish for equities, bearish for the Yen.
  • Tech Credit Warning: Big Tech (Hyperscalers) are issuing massive debt for AI capex. Hedge funds are buying credit derivatives (CDS) to hedge against the risk that AI revenue generation fails to match this spending.
  • Media M&A: Warner Bros. Discovery is considering reopening talks with Paramount, potentially sparking a bidding war involving Netflix.
Trade Ideas
Ticker Direction Speaker Thesis Time
LONG Mark Cranfield
Cross Asset Strategist, Bloomberg
Japan's GDP came in much weaker than expected following a contraction in the previous quarter. Weak economic data forces Prime Minister Takaichi to embark on "fiscal expansion" (spending). This reinforces the "Takaichi Trade": printing money/spending stimulates stocks (Nikkei) but devalues the currency (Yen) and hurts bonds. Continue the short JPY / long Equity trade as fiscal stimulus becomes necessary. The Bank of Japan might still hike interest rates despite weak growth, which would strengthen the Yen.
LONG Emmanuel McGrory
Deals Editor, Bloomberg
Warner Bros. Discovery (WBD) is considering reopening sales talks with Paramount (PARA) after Paramount submitted amended terms. The transcript explicitly mentions this could "reignite a second bidding war with Netflix." If WBD re-engages, it puts a floor under PARA's stock price and signals consolidation in the media sector. LONG PARA as the acquisition target; WATCH WBD/NFLX for volatility around deal terms. Regulatory hurdles or deal talks collapsing again (as they have previously). 0:27
WATCH Mark Cranfield
Cross Asset Strategist, Bloomberg
Hyperscalers are issuing record amounts of debt to fund the "biggest year of spending" for AI. Hedge funds are buying Credit Default Swaps (CDS) to hedge this exposure. If AI revenue figures ("the income generated from all these huge investments") do not materialize, credit spreads will widen, creating a "downward spiral" that feeds back into equities. WATCH credit spreads on Big Tech. If CDS costs rise, it is a leading indicator for an equity correction. AI revenue could surprise to the upside, rendering the hedges useless. 10:02
LONG Joumanna Bercetche
Anchor, Bloomberg
There has been a "record ramp up in industrial metals." Major miners like BHP are reporting earnings this week against a backdrop of surging metal prices. LONG miners heading into earnings due to favorable commodity pricing. Disappointing guidance on production costs or demand from China (which is closed for Lunar New Year). 1:49
AVOID Mark Cranfield
Cross Asset Strategist, Bloomberg
These companies were added to a Pentagon list of firms working with the Chinese military, then the list was withdrawn/redrawn, creating confusion. While being on the list doesn't immediately sanction them, it "makes it difficult for US businesses to do business with their Chinese counterparts" and lays the groundwork for future, more serious sanctions. AVOID due to heightened geopolitical risk and regulatory uncertainty ahead of the Trump-Xi meeting in April. The list could be permanently scrapped, removing the overhang.
LONG Mark Cranfield
Cross Asset Strategist, Bloomberg
US CPI was benign, and markets are pricing in three rate cuts for 2026 (up from two). Investors are ignoring hot data and focusing on data that supports cuts. If the upcoming PCE data confirms the inflation downtrend, "bonds will have another very good week." LONG Bonds/Treasuries anticipating the PCE print confirms the dovish Fed path. PCE comes in hotter than expected (above 3%), derailing the rate cut narrative.
NEUTRAL Joumanna Bercetche
Anchor, Bloomberg
Gold has slipped below $5,000/oz, down about 1% on the day. Traders are using the benign inflation print to "trim some of the profits." The inflation hedge trade is unwinding slightly as inflation cools. NEUTRAL/WATCH. The asset is seeing profit-taking after a massive run-up (to $5k). Geopolitical escalation (Russia/Ukraine) could drive safe-haven flows back in. 1:10